A few months ago, InnBucks, one of the biggest mobile money players in Zimbabwe, moved to a subscription model.
They called it KaOne, and the new model saw users paying $1 a month for free unlimited transactions. Well, not technically unlimited, because mobile money transactions have a limit ($500) as per the central bank’s directive, but you get the point.
We celebrated this deal, as it led to heavy users paying less in charges than they did under the old model, where users paid a certain percentage of the transaction value when sending or withdrawing money.
InnBucks has undone all that and now has a hybrid model. They sent out this message:
Please note, from 4/12/24 our business conditions now include a 1% cash withdrawal fee. The rest of your transactions continue to be covered by just $1/month. Ka1!
They have ruined the deal.
Not That Bad
I’ll have to admit that the new deal—the hybrid model—is not that bad. For heavy users, it still comes out cheaper than it would if they paid the standard transaction fees prevailing in the market.
For example, the biggest mobile money player, EcoCash, charges 2.3% to send money (including tax) and 1.3% to cash out.
So, if you sent money to someone and wanted them to cash out $100, here’s how much you would pay in fees:
- EcoCash – about $4.13
- InnBucks – about $2.01
That’s not to mention that the next time you send money that month, the InnBucks charge would drop to $1 (just the 1% fee), while the EcoCash charge would still be $4.13.
Still a Good Deal
This means the InnBucks deal is still a good one, but it’s not a move we can celebrate. It’s Christmas time, and we’ve received a stinker of a present from InnBucks.
As a result, the O’Mari Mahala Bundle deal now stands as the best deal in town. They have a $1 subscription offer that covers your withdrawals too.
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